Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help!! Required information [Fhe following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. The

help!!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [Fhe following information applies to the questions displayed below.] Antuan Company set the following standard costs per unit for its product. The standard overhead rate ( $18.50 per direct labor hour) is based on a predicted activity level of 75% of the factory's capacity of 20,000 units per month. Following are the company's budgeted overhead costs per month at the 75% capacity level. The company incurred the following actual costs when it operated at 75% of capacity in October. Required: 1. Prepare flexible overhead budgets for October showing amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels. \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Flexible Overhead Budgets } \\ \hline \multirow{2}{*}{ For Month Ended October 31} & \multirow{2}{*}{\begin{tabular}{c} Variable Amount \\ per Unit \end{tabular}} & \multirow{2}{*}{\begin{tabular}{l} Total Fixed \\ Cost \end{tabular}} & \multicolumn{3}{|c|}{ Flexible Budget at Capacity Level of } \\ \hline & & & 65% & 75% & 85% \\ \hline Production (in units) & s & & & & \\ \hline \multicolumn{6}{|l|}{ Variable overhead costs } \\ \hline \multicolumn{6}{|l|}{ Indirect materials } \\ \hline \multicolumn{6}{|l|}{ Indirect labor } \\ \hline Power & 2 & & & & \\ \hline \multicolumn{6}{|l|}{ Maintenance } \\ \hline & s. & & & & \\ \hline Total variable overhead & $0.00 & & $ & 0 & $ \\ \hline Fixed overhead costs & & & & & \\ \hline \multicolumn{6}{|l|}{ Depreciation-Building } \\ \hline \multicolumn{6}{|l|}{ Depreciation-Machinery } \\ \hline \multicolumn{6}{|l|}{ Taxes and insurance } \\ \hline \multicolumn{6}{|l|}{ Supervisory salaries } \\ \hline & & & & & \\ \hline Total fixed overhead & & 0 & $ & 0 & $ \\ \hline Total overhead costs & & & & & \\ \hline \end{tabular} Compute the direct materials variance, including its price and quantity variances. te: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. 3. Compute the direct labor variance, including its rate and efficiency variances. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Round "Rate per hour" answers to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

1618533592, 9781618533593

More Books

Students also viewed these Accounting questions

Question

Dont smell (i.e., too much perfume/cologne).

Answered: 1 week ago

Question

What is the history of this situation?

Answered: 1 week ago